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A charity which helps those in fuel poverty says demand for its services increased by 75% in the last year due to spiralling energy costs.
Fuel Bank Foundation, which provides emergency fuel vouchers to those who cannot afford to top up their prepayment gas and/or electricity meters, said the number of people it has helped across Britain increased from 53,422 in 2020 to 93,434 in 2021.
The charity said the continuing squeeze on household budgets due to increased energy prices and cap, the removal of the £20 Universal Credit uplift, inflation, and the impact of the pandemic has pushed many people to “financial breaking point”.
In December last year, Fuel Bank Foundation saw the highest level of demand since it was launched in 2015.
“The crisis only looks set to worsen too following the price cap announcement from Ofgem, which will see energy bills for millions of vulnerable people soar from April and could rise to as much as £321 per month by January 2023, which would be catastrophic for those already living in fuel poverty,” said Matthew Cole, the charity’s chair.
A survey of the people helped by Fuel Bank Foundation over the last 12 months found 45% had to ration their daily hot water use, up from 41% in 2020. Meanwhile, 14% sacrificed a hot meal to save energy, up from 1% in 2020.
Almost all (96%) said they have had to make the choice between topping up their prepayment meter and buying food for their family. In addition to energy costs, 74% were struggling with other essential household bills, including food, water and council tax.
“A comprehensive government funded energy efficiency programme to improve UK housing stock is the only long-term, sustainable solution to the issue of affordability as it helps lift people out of fuel poverty permanently,” said Cole, who added that such measures take time.
Last week, chancellor Rishi Sunak unveiled a £9.1 billion support package which includes a £200 rebate on electricity bills in October as well as a £150 council tax rebate in April for households in England living in bands A to D.
Cole said, while the charity welcomes the measures introduced by Sunak, they did not go far enough to support those who need it the most.
He added: “As such, we’re proposing a number of ‘quick-fix’ solutions that could be implemented immediately, including ensuring all those who are eligible for the Warm Home Discount receive it – an estimated two million households missed out in 2020/21 – and that it’s paid in instalments during periods of high energy consumption, rather than in one lump sum. This should also be supplemented by additional targeted financial support.
“We know that energy takes up a higher proportion of poorer households’ budgets than more affluent ones, so simply increasing the bills of all energy customers to pay for the extra financial support will, in turn, increase energy prices further and push more people into fuel poverty.
“We believe these costs should be funded by general taxation so that those who can afford to pay the most.”
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